WVC 33 - 25 D- 4
§33-25D-4. Conditions precedent to issuance or maintenance of a
certificate of authority; renewal of certificate of authority; effect of bankruptcy proceedings.
(a) As a condition precedent to the issuance or maintenance of
a certificate of authority, a prepaid limited health service
organization shall file or have on file with the commissioner:

(1) An acknowledgment that a delinquency proceeding pursuant
to article ten of this chapter or supervision by the commissioner
pursuant to article thirty-four of this chapter is the sole
and exclusive method for the liquidation, rehabilitation,
reorganization, or conservation of a prepaid limited health service
organization;

(2) A waiver of any right to file or be subject to a
bankruptcy proceeding;

(3) Within thirty days of any change in the membership of the
governing body of the organization or in the officers or persons
holding five percent or more of the common stock of the
organization, or as otherwise required by the commissioner:

(A) An amended list of the names, addresses and official
positions of each member of the governing body, and a full
disclosure of any financial interest by a member of the governing
body or any provider or any organization or corporation owned or
controlled by that person and the prepaid limited health service organization and the extent and nature of any contract or financial
arrangements between that person and the prepaid limited health
service organization; and

(B) A complete biographical statement on forms prescribed by
the commissioner and an independent investigation report on each
such person for whom a biographical statement and independent
investigation report have not previously been submitted.

(b) All certificates of authority issued to prepaid
limited health service organizations expire at midnight on the
thirty-first day of May of each year. The commissioner shall renew
annually the certificates of authority of all prepaid limited
health service organizations which continue to meet all
requirements of this section and subsection (b), section five of
this article, make application therefor upon a form prescribed by
the commissioner and pay the renewal fee prescribed: Provided,
That a prepaid limited health service organization does not qualify
for renewal of its certificate of authority if the organization has
no subscribers in this state within twelve months after issuance
of the certificate of authority: Provided, however, That an
organization not qualifying for renewal may apply for a new
certificate of authority under section three of this article.

(c) The commencement of a bankruptcy proceeding either by or against a prepaid limited health service organization, by operation
of law:

(1) Terminates the prepaid limited health service
organization's certificate of authority; and

(2) Vests in the commissioner for the use and benefit of the
subscribers of the prepaid limited health service organization the
title to any deposits of the prepaid limited health service
organization held by the commissioner.

(d) If the bankruptcy proceeding is initiated by a party other
than the prepaid limited health service organization, the operation
of subsection (c) of this section is stayed for a period of sixty
days following the date of commencement of the proceeding.

Note: WV Code updated with legislation passed through the 2014 1st Special Session
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